The state of New Jersey, in two...

RESORT IN TROUBLE.

November 29, 1989

- ATLANTIC CITY — RESORT IN TROUBLE. The state of New Jersey, in two confidential letters, has demanded $34 million from Merv Griffin's troubled Resorts International Inc., saying a state audit could not substantiate how much the casino's former management spent on housing to help rebuild this blighted city. Resorts' gaming license obligated it to build housing to help redevelop Atlantic City. The state's demand for payment comes two weeks after a financial crisis forced Resorts into 'friendly bankruptcy'' proceedings brought by holders of $930 million in Resorts bonds.